Hamilton Landscaping's dividend growth rate is expected to be $25\%$ in the next year, drop

to $12\%$ from Year $1$ to Year $2,$ and drop to a constant $3\%$ after Year $2$ and all subsequent

years. Hamilton has just paid a dividend of $$2\mathrm{.}95$ and its stock has a required return of

$11\mathrm{.}5\%.$

a$.$ What is Hamilton's estimated stock price today?

a$.2$ What is Hamilton's estimated stock price for Year $1?$ b$.$ If you bought the stock at Year $0,$ what's your expected dividend yield and capital

gains for the upcoming year?

Find the expected dividend yield.

Dividend yield $=$

Find the expected capital gains yield.

Use the estimated price for Year $1,P_1,$ to find the expected gain.Hamilton Landscaping's dividend growth rate is expected to be $25\%$ in the next year, drop to $12\%$ from Year $1$ to Year $2,$ and drop to a constant $3\%$ after Year $2$ and all subsequent years. Hamilton has just paid a dividend of $$2\mathrm{.}95$ and its stock has a required return of $11\mathrm{.}5\%$